The 37-year-old will continue to work with Ian Watson, following spells at four previous clubs together.
Magnay, who took charge of Gateshead against Dale two seasons ago, commented:
“I’m delighted to be here.
“Me and Ian have been friends long before we worked together, we’re very much aligned with how we see the game.
“He’s a fantastic coach and we’re really excited to implement this style with these players.
“We’re really looking forward to bringing our tweaks and touches and hopefully improve us in any way we can.”
Gateshead-born Magnay came through the youth ranks at Leeds United and Durham-based Esh Winning before earning a professional contract at Chelsea in 2009.
After two loan spells, Carl moved to boyhood club Gateshead for the first time as a player, where he spent two seasons.
The former full-back endured a year with Grimsby Town, where he won the Supporters Player of the Year Award, before joining Hartlepool United in 2015.
He became club captain and made over 100 appearances for the Pools. Upon linking up with Spennymoor Town, he then started his coaching journey in 2019.
A return to Gateshead completed his playing career, as he helped the club to win the National League North title and reach the FA Trophy final at Wembley, with Watson as his mentor. Magnay was forced to retire three years ago and transitioned to the backroom setup.
Himself, Watson and Mike Williamson worked in unison at MK Dons and Carlisle United before Carl’s return to Gateshead as Manager.
He was hired as Ian’s assistant at South Shields last season with the pair clocking up 95 points, achieving the highest finish in the club’s history.
Welcome to Dale, Carl!